issuance of stock organization costs snowbound corporation was incorporated in july 502439

Issuance of stock: organization costs. Snowbound Corporation was incorporated in July. The firm’s charter authorized the sale of 200,000 shares of $10 par-value common stock. The following transactions occurred during the year:

7/1:

Sold 45,000 shares of common stock to investors for $18 per share. Cash was collected and the shares were issued.

8/11

Sold 20,000 shares to investors for $22 per share. Cash was collected and the shares were issued.

9/1 Declared a cash dividend on 9/1 for $1.00 a share for shareholders on record 10/1 with payment being made on 11/1.

Instructions

a. Prepare journal entries for the two stock issues.

b. Prepare journal entries for the cash dividend declaration and payment.